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THE PERSONAL ALLOWANCE WILL BE FROZEN AT £12,570 UNTIL THE 2027/28 FINANCIAL YEAR, THE LABOUR PARTY GOVERNMENT HAS CONFIRMED. 09:39, 29 May 2025 Over one million pensioners are set to pay a

higher rate of income tax this year. The Personal Allowance will be frozen at £12,570 until the 2027/28 financial year, the Labour Party government has confirmed. Charlene Young, senior

pensions and savings expert at AJ Bell, warns: “The nation has fallen victim to the effects of fiscal drag in recent years. "Frozen allowances and tax thresholds have pulled more people

into the tax system for the first time and hiked the rates of tax people pay as their income rises and they breach a new tax band. READ MORE FOREIGN OFFICE ISSUES 'IMPORTANT'

WARNING FOR UK TOURISTS 'WHO HAVE HEALTH CONDITION' “Pensioners are not shielded from it either - over one million people above state pension age will breach the higher rate 40 per

cent threshold this tax year, more than double the number there were when the big freeze began.” Article continues below Ms Young continued: “The UK Government is in a straitjacket thanks

to its own fiscal rules, and these figures will bolster the arguments of those calling for state pension reform. The full ‘new’ State Pension is close to breaching the tax-free Personal

Allowance, and many pensioners already receive well above this thanks to the way benefits could be built up under the old system." “The Labour Party has repeatedly pledged to protect

the Triple Lock guarantee and has paused further hikes to the State Pension age beyond those due to start in 2026. “But with pensioner spending predicted to top 50 per cent of the welfare

bill by the end of the decade, and the rise in State Pension age from 66 to 67 set to save £10 billion in borrowing, can it really continue to ignore calls for further reform?” Article

continues below The New and Basic State Pensions increased by 4.1 per cent in April, however, future forecasts from the Labour Government expect it to rise by 2.5 per cent over the next four

financial years. Using these calculations, it puts the full New State Pension on track to be worth £12,578.80 in the 2027/28 financial year - £78.80 over the Personal Allowance.